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HUF: EURHUF Trading Above 50-Day EMA and Close to 390.00

HUF
  • EURHUF is trading close to 390.00 and at its highest levels of the week. The cross has bounced an impressive ~1.8% off Tuesday’s lows, undoing the entirety of the May downleg in the process. We also remain above the 50-day EMA at 389.11, signalling scope for an extension higher towards trendline resistance at 392.08.
  • Deteriorating global risk sentiment has been the dominant cause of the broad based weakness across CE3 FX, with both PLN and CZK recording losses, albeit more moderate, against the EUR on the week. The release of Eurozone CPI data for May in the past few minutes has done little to move the needle for EURHUF, with the cross in consolidation mode so far on Friday.
  • Looking ahead, Moody’s is scheduled to review Hungary’s sovereign credit rating after markets close (Current Rating: Baa2; Outlook: stable), while the final reading of 1Q GDP data, industrial production, retail sales and manufacturing PMI figures will all cross next week.

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